President Lee Jae-myung emphasized capital market normalization as a 'very important national policy' during an economic ministry briefing on the 15th at Cheong Wa Dae. He ordered accelerated legislation on stock price manipulation prevention laws. The President criticized South Korea's excessive real estate asset allocation as 'very primitive,' stating that capital tied up in real estate causes 'very unreasonable results' in economic growth. The directive came during discussions on transitioning financial resources from real estate to capital markets.
President Lee Criticizes Real Estate Asset Allocation
President Lee stated during the morning briefing, 'Isn't the proportion of real estate still too large in our society's asset allocation? It's very primitive. There's no such country among advanced nations. Everyone is clinging to real estate.' He pointed out, 'Available resources are tied up in real estate, so very unreasonable results occur in economic growth and resource allocation. Correcting that, converting to finance is a very important task, and it seems to be one element of that.'
The President then pressed Financial Services Commission Chairman Lee Eok-won, asking, 'I understand various measures are being prepared for capital market, especially stock market normalization. How is it progressing?'
FSC Chairman Reports Capital Market Reform Measures
Chairman Lee responded, 'Basically, trust is most important in capital markets, so we continue to eradicate stock price manipulation, and the whistleblower reward issue is progressing well.' He explained, 'Shareholder value protection is also very important. Following Commercial Act amendments and treasury stock system reforms, we announced amendments to prohibit dual listing in principle with exceptions allowed, are collecting opinions, and will implement them in earnest within July.'
He added, 'For the KOSDAQ market, to catch two rabbits of trust and innovation, we are expanding technology-oriented customized special listings so innovative companies can enter smoothly, and promoting swift delisting of insolvent companies.'
President Orders Legislative Acceleration on Stock Price Laws
President Lee responded, 'I was briefed that comprehensive measures are being prepared. Please report the details separately.' He criticized, 'It seems the legislative situation, like the stock price manipulation prevention law I mentioned before, still hasn't been done.'
Chairman Lee replied, 'For the stock price manipulation prevention law, we are reviewing together methods through inheritance and gift tax law and measures to penalize cases that intentionally lower low PBR.'
President Lee concluded, 'Prepared things must be done, but legislation is not going well and is being delayed. Somehow obtain cooperation and speed things up.'
FAQ
What did President Lee order regarding capital market legislation on the 15th?
President Lee ordered accelerated legislation on stock price manipulation prevention laws during an economic ministry briefing at Cheong Wa Dae. He stated that prepared measures must be implemented and urged officials to obtain cooperation to speed up pending legislation that has been delayed.
Why did President Lee criticize South Korea's asset allocation?
President Lee criticized the excessive proportion of real estate in South Korea's asset allocation as 'very primitive' compared to advanced nations. He stated that available resources tied up in real estate cause 'very unreasonable results' in economic growth and resource allocation, emphasizing the importance of converting to financial assets.
What capital market reform measures did the FSC Chairman report?
FSC Chairman Lee Eok-won reported measures including continued eradication of stock price manipulation, whistleblower reward programs, shareholder value protection through Commercial Act amendments, treasury stock system reforms, and amendments to prohibit dual listing in principle with exceptions. He stated the dual listing amendments will be implemented in earnest within July.
